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Ch3-1Chapter3TheExternalAssessment
Ch3-1Chapter3TheExternalCh3-2ChapterOutlineTheNatureoftheExternalAuditTheIndustrialOrganization(I/O)ViewSocial,Cultural,Demographic&
EnvironmentalForcesCh3-2ChapterOutlineTheNatuCh3-3ChapterOutline(cont’d)Political,Governmental,andLegalForcesTechnologicalForcesCompetitiveForcesCh3-3ChapterOutline(cont’dCh3-4ChapterOutline(cont’d)Porter’sFive-ForcesModelForecastingTools&TechniquesCh3-4ChapterOutline(cont’dCh3-5ChapterOutline(cont’d)TheExternalFactorEvaluation(EFE)MatrixCompetitiveProfileMatrix(CPM)Ch3-5ChapterOutline(cont’dCh3-6ExternalenvironmentsOrganizationInternalenvironmentsExternal‘mirco’or‘near’environmentsExternal‘macro’or‘far’environmentsCh3-6ExternalenvironmentsOrCh3-7ExternalStrategicManagementAudit
--EnvironmentalScanning --IndustryAnalysisCh3-7ExternalStrategicManaCh3-8
Identify&EvaluatefactorsbeyondthecontrolofasinglefirmIncreasedforeigncompetitionPopulationshiftsAgingsocietyFearoftravelingStockmarketvolatility
ExternalStrategicManagementAuditCh3-8
Identify&EvaluatefaCh3-9
PurposeofExternalAuditIdentifyOpportunitiesThreatsExternalStrategicManagementAuditCh3-9
PurposeofExternalAuCh3-10KeyExternalForcesSocial,cultural,demographicforcesPolitical,governmental&legalforcesEconomicforcesNaturalforcesTechnologicalforcesThefiveinfluencesareofteninterlinkedCh3-10KeyExternalForcesSocCh3-11CompetitorsSuppliersDistributorsCreditorsCustomersEmployeesCommunitiesManagersStockholdersLaborUnionsSpecialInterestGroupsProductsServicesMarketsNaturalEnvironmentKeyExternalForcesOpportunities&ThreatsKeyExternalForces&theOrganizationCh3-11CompetitorsKeyOpportunCh3-12
Gathercompetitiveintelligence–
SocialCulturalDemographicEnvironmentalGovernmentalLegalTechnologicalExternalAuditCh3-12
GathercompetitiveinCh3-13PerformingExternalAudit
--KeyFactorsVaryovertimeVarybyindustryCh3-13PerformingExternalAuCh3-14SPENTcanbeusedasfollows:CHECKLIST-likeanenvironmentalaudittoidentifyallinfluencesKEYFACTORS-havingidentifiedmanyfactors,cannarrowthemdowntomostimportantIMPACT-mustanalysethelikely&differentialimpactofeachoftheinfluencesTHEFARENVIRONMENT
Ch3-14SPENTcanbeusedasfCh3-15socio-demographicinfluencesSocialculture(values,attitudes&beliefs)impactsondemandforproductsandservices,attitudestowork,ethics,etc.Demography–theimpactofthesizeandstructureofthepopulationontheworkforceandpatternsofdemandCh3-15socio-demographicinflCh3-16Social,Cultural,DemographicForcesMajorImpact–ProductsServicesMarketsCustomersCh3-16Social,Cultural,DemoCh3-17ActuarialratesMonitorKeyVariablesPercapitaincomeAttitudestowardbusinessAvg.disposableincomeSocial,Cultural,DemographicForcesCh3-17ActuarialratesMonitorCh3-18ConsumerbehaviorMonitorKeyVariablesEthicalconcernsAttitudestowardsavingRacialequalitySocial,Cultural,DemographicForcesCh3-18ConsumerbehaviorMonitCh3-19AcationallevelMonitorKeyVariablesGovernmentalregulationAttitudestowardcustomerserviceAttitudestowardqualitySocial,Cultural,DemographicForcesSocialresponsibilityLeisuretimevaluesCh3-19AcationallevelCh3-20Political,Government&LegalForces
Keyopportunities&threatsAntitrustlegislationTaxratesLobbyingeffortsPatentlawsGovernmentRegulationCh3-20Political,GovernmentCh3-21Political,Government&LegalForces
Politicalvariablesimpact–FormulationofstrategiesImplementationofstrategiesIncreasingGlobalInterdependenceCh3-21Political,GovernmentCh3-22Political,Government&LegalForces
Strategistsinaglobaleconomy–ForecastpoliticalclimatesLegalisticskillsDiverseworldcultures
IncreasingGlobalInterdependenceCh3-22Political,GovernmentCh3-23EconomicForcesAvailabilityofcreditLevelofdisposableincomeInterestratesInflationratesCh3-23EconomicForcesAvailabCh3-24Economicinfluences
经济因素：1.宏观经济的总体状况—GDP增长率（fiscalpolicy，etc.）2.中央银行的利率水平Interestrate（monetarypolicy)3.消费者物价指数CPI（levelsofinflation)4.劳动力的供给Supplyoflabour5.消费者收入水平levelsofincome6.产业集群Clusters7.关税种类及水平、汇率等Tariff,exchangerate8.各种经济-政治联盟Economical-PoliticalbodiesCh3-24Economicinfluences经济Ch3-25MichaelPorter--ClustersandtheNewEconomicsofCompetition
Clusters:criticalmassesinoneplaceoflinkedindustriesandinstitutions--fromsupplierstouniversitiestogovernmentagencies--thatenjoyunusualcompetitivesuccessinaparticularfield.ClustersaffectcompetitioninthreebroadwaysIncreasingtheproductivityofcompaniesbasedintheareaDrivingthedirectionandpaceofinnovationThemostStimulatingtheformationofnewbusinesseswithintheclusterCompetitiveadvantageliesincreasinglyinlocalthings--knowledge,relationships,andmotivation--thatdistantrivalscannotreplicateFamousexamplesarefoundinSiliconValleyandHollywoodCh3-25MichaelPorter--ClusCh3-26NaturalinfluencesTheimpactofnaturaleventsuponbusinessactivitycanbeverypowerfulanddifficulttopredictoravoidForbusinessaffectedbynaturalimpact,theeffectscanbeverycostlyandfar-reachingCh3-26NaturalinfluencesTheCh3-27WastemanagementMonitorKeyVariablesAir&waterpollutionOzonedepletionEndangeredspeciesNatural&EnvironmentalForcesEnergyconservationRecyclingCh3-27WastemanagementMonitoCh3-28TechnicalinfluencesChangesintechnologyaffecttheproductsavailabletocustomers,thequality,thecostoftheproductsandtheirfunctionalityCh3-28TechnicalinfluencesChCh3-29TechnologicalForcesEssentialfornearlyeverystrategicdecisionTechnology-basedissuesCh3-29TechnologicalForcesTeCh3-30TheimportanceoftheSPENTanalysisprocessTheimportanceoftheprocessistoidentifyissuesthatwillhaveanimpactontheorganizationandtheindustryCategorizingthemcorrectlybetweenthefactorsisofsecondaryimportanceCh3-30TheimportanceoftheCh3-31EconomiesofScaleIndustryPropertiesBarrierstomarketentryProductdifferentiationLevelofcompetitivenessI/OPerspectiveFirmPerformanceCh3-31EconomiesofScaleInduCh3-32StepstoDetermineifanAcceptable
ProfitCanbeEarned1.Identifykeyaspectsorelementsofeachcompetitiveforce2.Evaluatehowstrongandimportanteachelementisforthefirm3.DecidewhetherthecollectivestrengthoftheelementsisworththefirmenteringorstayingintheindustryCh3-32StepstoDetermineifCh3-33TheintensityofrivalryamongcompetitorsintheindustryThenumberandsizeofthecompetitorsintheindustryThematurityoftheindustryThedifferentiationsofproductsintheindustryCh3-33TheintensityofrivalCh3-34IndustriallifecycleIndustrysalesTimeIntroductionMaturityGrowthDeclineCh3-34IndustriallifecycleInCh3-35KFSThekeyfactorsforsuccessarethoseresources,skillsandattributesoffirmsintheindustrythatareessentialtodeliverprofitabilityKFSarecommontoallthemajororganizationsintheindustryandusuallydonotdifferentiateoncompanyfromanotherKFSwillvaryfromoneindustrytoanotherCh3-35KFSThekeyfactorsfoCh3-36TheFive-ForcesModelofCompetitionPotentialdevelopmentofsubstituteproductsRivalryamongcompetingfirmsBargainingpowerofsuppliersPotentialentryofnewcompetitorsBargainingpowerofconsumersCh3-36TheFive-ForcesModelCh3-37TheFive-ForcesModelMostpowerfulofthefiveforcesFocusoncompetitiveadvantageofstrategiesRivalryAmongCompetingFirmsCh3-37TheFive-ForcesModelMCh3-38TheintensityofrivalryamongcompetitorsintheindustryThematurityoftheindustryThenumberandsizeofthecompetitorsintheindustryThedifferentiationsofproductsintheindustryMerger&acquisitionFree-flowinginformationontheInternetCh3-38TheintensityofrivalCh3-39ThethreatofnewentrantstotheindustryEconomiesofscaleavailabletoexistingcompetitorsThecapitalcostsofentryBrandloyaltyandcustomerswitchingcostsSwitchingcosts:thecostofchangingtoanewsupplier,oneofthekeystrategicmanoeuvresinmaintainingcustomerloyaltyAccesstoinputanddistributionchannelsTheresistanceofferedbyexistingbusinessesCh3-39ThethreatofnewentrCh3-40TheFive-ForcesModelBarrierstoentryareimportantQuality,pricing,andmarketingcanovercomebarriersPotentialEntryofNewCompetitorsCh3-40TheFive-ForcesModelBCh3-41TheFive-ForcesModelPressuresincreasewhenconsumer’sswitchingcostsdecreaseFirm’splansforincreasedcapacity&marketpenetrationPotentialDevelopmentofSubstituteProductsCh3-41TheFive-ForcesModelPCh3-42ThethreatofsubstituteproductsTheextenttowhichthepriceandperformanceofthesubstitutecanmatchtheindustry’sproductThewillingnessofbuyerstoswitchtothesubstituteCh3-42ThethreatofsubstituCh3-43Thebargainingpowerofsuppliers
ThenumberandsizeofresourcesuppliersThecostofswitchingtoanotherresourceTheuniquenessandscarcityoftheresourcethatsuppliersprovideCh3-43ThebargainingpoweroCh3-44TheFive-ForcesModelLargenumberofsuppliers&fewsubstitutesaffectsintensityofcompetitionBackwardintegrationcangaincontrolorownershipofsuppliersBargainingPowerofSuppliersCh3-44TheFive-ForcesModelLCh3-45TheFive-ForcesModelCustomersconcentratedorbuyinginvolumeaffectsintensityofcompetitionConsumerpowerishigherwhereproductsarestandardorundifferentiatedBargainingPowerofConsumersCh3-45TheFive-ForcesModelCCh3-46ConditionswhereConsumersGain
BargainingPowerIftheycaninexpensivelyswitchIftheyareparticularlyimportantIfsellersarestrugglinginthefaceoffallingconsumerdemandIfthesellingpriceisimportanttothetotalcostsofthebuyersIftheyareinformedaboutseller’sproducts,pricesandcosts.Iftheyhavediscretioninwhetherandwhentheypurchasetheproduct.Ch3-46ConditionswhereConsuCh3-47StrategicgroupswithinanindustryFiveForcesModelundertakesonlyageneralanalysisofcompetitorsStrategicgroupsexploreinmoredetailthecompetitiveforcesactingwithinpartsofanindustryStrategicgroupsoffirmswithinanindustryfollowthesamestrategiesorhaveverysimilardimensions（samemarketsegments,similartechnology,etc.)Ch3-47StrategicgroupswithiCh3-48StrategicgroupsintheautomobileindustryqualityNationalRegionalGlobalSuper-premiumPremiumRegularEconomyGeographiccoverageCh3-48StrategicgroupsinthCh3-49MobilitybarriersMobilitybarriers:factorsthatdeterthemovementoffirmsfromonestrategicpositiontoanotherSomefirmscanenjoysystematicadvantagesoverothers,througheconomiesofscale,absolutecostadvantages,famousbrandnames,highqualityproducts,etc.Ch3-49MobilitybarriersMobilCh3-50CompetitiveForcesCollection&evaluationofdataoncompetitorsisessentialforsuccessfulstrategyformulationCh3-50CompetitiveForcesCollCh3-51CompetitiveForcesCompetitiononvirtuallyallindustriescanbedescribedasintense.Ch3-51CompetitiveForcesCompCh3-52CompetitorsanalysisCompetitorsanalysismodelObjectiveofcompetitorsHypothesisofcompetitorsCurrentstrategiesofcompetitorsCompetencesofcompetitorsCh3-52CompetitorsanalysisCoCh3-53ForecastingToolsandTechniquesForecastsareeducatedassumptionsaboutfuturetrendsandeventsQuantitativetechniques–MostappropriatewhenhistoricaldataisavailableandthereisaconstantrelationshipQualitativetechniquesCh3-53ForecastingToolsandCh3-54Totalweightedscoreof4.0OrganizationresponseisoutstandingtothreatsandweaknessesIndustryAnalysisEFETotalweightedscoreof1.0Firm’sstrategiesnotcapitalizingonopportunitiesoravoidingthreatsTheaveragetotalweightedscoreis2.5Ch3-54TotalweightedscoreoCh3-55IndustryAnalysisEFE
UnderstandingthefactorsusedintheEFEMatrixismoreimportant
thantheactualweightsandratingsassigned.
Important--Ch3-55IndustryAnalysisEFE
Ch3-56IndustryAnalysis:CompetitiveProfileMatrix(CPM)
Identifiesfirm’smajorcompetitorsandtheirstrengths&weaknessesinrelationtoasamplefirm’sstrategicpositionsCh3-56IndustryAnalysis:ComCh3-57IndustryAnalysis:CompetitiveProfileMatrix(CPM)TherearesomeimportantdifferencesbetweentheEFEandCPM.First,thecriticalsuccessfactorsinaCPMarebroader.ThesefactorsarealsonotgroupedintoopportunitiesandthreatsasintheEFE.InaCPM,theratingsandweightedscorescanbecomparedtorivalfirms
Ch3-57IndustryAnalysis:ComCh3-58IndustryAnalysisCPM
Justbecauseonefirmreceivesa3.2ratingandanotherreceivesa2.8rating,itdoesnotfollowthatthefirstfirmis20percentbetterthanthesecond.Important--Ch3-58IndustryAnalysisCPM
Ch3-59IndustryAnalysisCPMNumbersrevealtherelativestrengthoffirms,buttheirimpliedprecisionisanillusionTheaimofthisanalysisisnottoarriveasinglenumber,butrathertoassimilateandevaluateinformationinameaningfulwaythataidsindecisionmakingImportant--Ch3-59IndustryAnalysisCPMN演讲完毕，谢谢观看！演讲完毕，谢谢观看！Ch3-61Chapter3TheExternalAssessment
Ch3-1Chapter3TheExternalCh3-62ChapterOutlineTheNatureoftheExternalAuditTheIndustrialOrganization(I/O)ViewSocial,Cultural,Demographic&
EnvironmentalForcesCh3-2ChapterOutlineTheNatuCh3-63ChapterOutline(cont’d)Political,Governmental,andLegalForcesTechnologicalForcesCompetitiveForcesCh3-3ChapterOutline(cont’dCh3-64ChapterOutline(cont’d)Porter’sFive-ForcesModelForecastingTools&TechniquesCh3-4ChapterOutline(cont’dCh3-65ChapterOutline(cont’d)TheExternalFactorEvaluation(EFE)MatrixCompetitiveProfileMatrix(CPM)Ch3-5ChapterOutline(cont’dCh3-66ExternalenvironmentsOrganizationInternalenvironmentsExternal‘mirco’or‘near’environmentsExternal‘macro’or‘far’environmentsCh3-6ExternalenvironmentsOrCh3-67ExternalStrategicManagementAudit
--EnvironmentalScanning --IndustryAnalysisCh3-7ExternalStrategicManaCh3-68
Identify&EvaluatefactorsbeyondthecontrolofasinglefirmIncreasedforeigncompetitionPopulationshiftsAgingsocietyFearoftravelingStockmarketvolatility
ExternalStrategicManagementAuditCh3-8
Identify&EvaluatefaCh3-69
PurposeofExternalAuditIdentifyOpportunitiesThreatsExternalStrategicManagementAuditCh3-9
PurposeofExternalAuCh3-70KeyExternalForcesSocial,cultural,demographicforcesPolitical,governmental&legalforcesEconomicforcesNaturalforcesTechnologicalforcesThefiveinfluencesareofteninterlinkedCh3-10KeyExternalForcesSocCh3-71CompetitorsSuppliersDistributorsCreditorsCustomersEmployeesCommunitiesManagersStockholdersLaborUnionsSpecialInterestGroupsProductsServicesMarketsNaturalEnvironmentKeyExternalForcesOpportunities&ThreatsKeyExternalForces&theOrganizationCh3-11CompetitorsKeyOpportunCh3-72
Gathercompetitiveintelligence–
SocialCulturalDemographicEnvironmentalGovernmentalLegalTechnologicalExternalAuditCh3-12
GathercompetitiveinCh3-73PerformingExternalAudit
--KeyFactorsVaryovertimeVarybyindustryCh3-13PerformingExternalAuCh3-74SPENTcanbeusedasfollows:CHECKLIST-likeanenvironmentalaudittoidentifyallinfluencesKEYFACTORS-havingidentifiedmanyfactors,cannarrowthemdowntomostimportantIMPACT-mustanalysethelikely&differentialimpactofeachoftheinfluencesTHEFARENVIRONMENT
Ch3-14SPENTcanbeusedasfCh3-75socio-demographicinfluencesSocialculture(values,attitudes&beliefs)impactsondemandforproductsandservices,attitudestowork,ethics,etc.Demography–theimpactofthesizeandstructureofthepopulationontheworkforceandpatternsofdemandCh3-15socio-demographicinflCh3-76Social,Cultural,DemographicForcesMajorImpact–ProductsServicesMarketsCustomersCh3-16Social,Cultural,DemoCh3-77ActuarialratesMonitorKeyVariablesPercapitaincomeAttitudestowardbusinessAvg.disposableincomeSocial,Cultural,DemographicForcesCh3-17ActuarialratesMonitorCh3-78ConsumerbehaviorMonitorKeyVariablesEthicalconcernsAttitudestowardsavingRacialequalitySocial,Cultural,DemographicForcesCh3-18ConsumerbehaviorMonitCh3-79AcationallevelMonitorKeyVariablesGovernmentalregulationAttitudestowardcustomerserviceAttitudestowardqualitySocial,Cultural,DemographicForcesSocialresponsibilityLeisuretimevaluesCh3-19AcationallevelCh3-80Political,Government&LegalForces
Keyopportunities&threatsAntitrustlegislationTaxratesLobbyingeffortsPatentlawsGovernmentRegulationCh3-20Political,GovernmentCh3-81Political,Government&LegalForces
Politicalvariablesimpact–FormulationofstrategiesImplementationofstrategiesIncreasingGlobalInterdependenceCh3-21Political,GovernmentCh3-82Political,Government&LegalForces
Strategistsinaglobaleconomy–ForecastpoliticalclimatesLegalisticskillsDiverseworldcultures
IncreasingGlobalInterdependenceCh3-22Political,GovernmentCh3-83EconomicForcesAvailabilityofcreditLevelofdisposableincomeInterestratesInflationratesCh3-23EconomicForcesAvailabCh3-84Economicinfluences
经济因素：1.宏观经济的总体状况—GDP增长率（fiscalpolicy，etc.）2.中央银行的利率水平Interestrate（monetarypolicy)3.消费者物价指数CPI（levelsofinflation)4.劳动力的供给Supplyoflabour5.消费者收入水平levelsofincome6.产业集群Clusters7.关税种类及水平、汇率等Tariff,exchangerate8.各种经济-政治联盟Economical-PoliticalbodiesCh3-24Economicinfluences经济Ch3-85MichaelPorter--ClustersandtheNewEconomicsofCompetition
Clusters:criticalmassesinoneplaceoflinkedindustriesandinstitutions--fromsupplierstouniversitiestogovernmentagencies--thatenjoyunusualcompetitivesuccessinaparticularfield.ClustersaffectcompetitioninthreebroadwaysIncreasingtheproductivityofcompaniesbasedintheareaDrivingthedirectionandpaceofinnovationThemostStimulatingtheformationofnewbusinesseswithintheclusterCompetitiveadvantageliesincreasinglyinlocalthings--knowledge,relationships,andmotivation--thatdistantrivalscannotreplicateFamousexamplesarefoundinSiliconValleyandHollywoodCh3-25MichaelPorter--ClusCh3-86NaturalinfluencesTheimpactofnaturaleventsuponbusinessactivitycanbeverypowerfulanddifficulttopredictoravoidForbusinessaffectedbynaturalimpact,theeffectscanbeverycostlyandfar-reachingCh3-26NaturalinfluencesTheCh3-87WastemanagementMonitorKeyVariablesAir&waterpollutionOzonedepletionEndangeredspeciesNatural&EnvironmentalForcesEnergyconservationRecyclingCh3-27WastemanagementMonitoCh3-88TechnicalinfluencesChangesintechnologyaffecttheproductsavailabletocustomers,thequality,thecostoftheproductsandtheirfunctionalityCh3-28TechnicalinfluencesChCh3-89TechnologicalForcesEssentialfornearlyeverystrategicdecisionTechnology-basedissuesCh3-29TechnologicalForcesTeCh3-90TheimportanceoftheSPENTanalysisprocessTheimportanceoftheprocessistoidentifyissuesthatwillhaveanimpactontheorganizationandtheindustryCategorizingthemcorrectlybetweenthefactorsisofsecondaryimportanceCh3-30TheimportanceoftheCh3-91EconomiesofScaleIndustryPropertiesBarrierstomarketentryProductdifferentiationLevelofcompetitivenessI/OPerspectiveFirmPerformanceCh3-31EconomiesofScaleInduCh3-92StepstoDetermineifanAcceptable
ProfitCanbeEarned1.Identifykeyaspectsorelementsofeachcompetitiveforce2.Evaluatehowstrongandimportanteachelementisforthefirm3.DecidewhetherthecollectivestrengthoftheelementsisworththefirmenteringorstayingintheindustryCh3-32StepstoDetermineifCh3-93TheintensityofrivalryamongcompetitorsintheindustryThenumberandsizeofthecompetitorsintheindustryThematurityoftheindustryThedifferentiationsofproductsintheindustryCh3-33TheintensityofrivalCh3-94IndustriallifecycleIndustrysalesTimeIntroductionMaturityGrowthDeclineCh3-34IndustriallifecycleInCh3-95KFSThekeyfactorsforsuccessarethoseresources,skillsandattributesoffirmsintheindustrythatareessentialtodeliverprofitabilityKFSarecommontoallthemajororganizationsintheindustryandusuallydonotdifferentiateoncompanyfromanotherKFSwillvaryfromoneindustrytoanotherCh3-35KFSThekeyfactorsfoCh3-96TheFive-ForcesModelofCompetitionPotentialdevelopmentofsubstituteproductsRivalryamongcompetingfirmsBargainingpowerofsuppliersPotentialentryofnewcompetitorsBargainingpowerofconsumersCh3-36TheFive-ForcesModelCh3-97TheFive-ForcesModelMostpowerfulofthefiveforcesFocusoncompetitiveadvantageofstrategiesRivalryAmongCompetingFirmsCh3-37TheFive-ForcesModelMCh3-98TheintensityofrivalryamongcompetitorsintheindustryThematurityoftheindustryThenumberandsizeofthecompetitorsintheindustryThedifferentiationsofproductsintheindustryMerger&acquisitionFree-flowinginformationontheInternetCh3-38TheintensityofrivalCh3-99ThethreatofnewentrantstotheindustryEconomiesofscaleavailabletoexistingcompetitorsThecapitalcostsofentryBrandloyaltyandcustomerswitchingcostsSwitchingcosts:thecostofchangingtoanewsupplier,oneofthekeystrategicmanoeuvresinmaintainingcustomerloyaltyAccesstoinputanddistributionchannelsTheresistanceofferedbyexistingbusinessesCh3-39ThethreatofnewentrCh3-100TheFive-ForcesModelBarrierstoentryareimportantQuality,pricing,andmarketingcanovercomebarriersPotentialEntryofNewCompetitorsCh3-40TheFive-ForcesModelBCh3-101TheFive-ForcesModelPressuresincreasewhenconsumer’sswitchingcostsdecreaseFirm’splansforincreasedcapacity&marketpenetrationPotentialDevelopmentofSubstituteProductsCh3-41TheFive-ForcesModelPCh3-102ThethreatofsubstituteproductsTheextenttowhichthepriceandperformanceofthesubstitutecanmatchtheindustry’sproductThewillingnessofbuyerstoswitchtothesubstituteCh3-42ThethreatofsubstituCh3-103Thebargainingpowerofsuppliers
ThenumberandsizeofresourcesuppliersThecostofswitchingtoanotherresourceTheuniquenessandscarcityoftheresourcethatsuppliersprovideCh3-43ThebargainingpoweroCh3-104TheFive-ForcesModelLargenumberofsuppliers&fewsubstitutesaffectsintensityofcompetitionBackwardintegrationcangaincontrolorownershipofsuppliersBargainingPowerofSuppliersCh3-44TheFive-ForcesModelLCh3-105TheFive-ForcesModelCustomersconcentratedorbuyinginvolumeaffectsintensityofcompetitionConsumerpowerishigherwhereproductsarestandardorundifferentiatedBargainingPowerofConsumersCh3-45TheFive-ForcesModelCCh3-106ConditionswhereConsumersGain
BargainingPowerIftheycaninexpensivelyswitchIftheyareparticularlyimportantIfsellersarestrugglinginthefaceoffallingconsumerdemandIfthesellingpriceisimportanttothetotalcostsofthebuyersIftheyareinformedaboutseller’sproducts,pricesandcosts.Iftheyhavediscretioninwhetherandwhentheypurchasetheproduct.Ch3-46ConditionswhereConsuCh3-107StrategicgroupswithinanindustryFiveForcesModelundertakesonlyageneralanalysisofcompetitorsStrategicgroupsexploreinmoredetailthecompetitiveforcesactingwithinpartsofanindustryStrategicgroupsoffirmswithinanindustryfollowthesamestrategiesorhaveverysimilardimensions（samemarketsegments,similartechnology,etc.)Ch3-47StrategicgroupswithiCh3-108StrategicgroupsintheautomobileindustryqualityNationalRegionalGlobalSuper-premiumPremiumRegularEconomyGeograp
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